Delinquencies Drop as Fannie Mae Book of Business Shrinks

Fannie Mae's book of business decreased at a compound annualized rate of 1.7 percent over the month of June, slower than the previous month's rate of 2.4 percent but continuing a streak of decreases that has persisted all year so far. Year-to-date, Fannie Mae's book of business has declined at a compound annualized rate of 2.2 percent.

The GSE's gross mortgage portfolio declined at a compound annualized rate of 9.6 percent in June, down from a 12.5 percent decline in May and below the year-to-date annualized decline of 14.9 percent. June's mortgage portfolio decrease is the second-slowest decline so far this year.

Fannie Mae's gross mortgage portfolio stands at $452.8 billion as of the end of June.

New business acquisitions in June totaled $35.6 billion, the highest monthly acquisition total so far this year.

During the month of June, Fannie Mae liquidated mortgage-backed securities in its portfolio at an annualized rate of 14.31 percent. Year-to-date, Fannie has liquidated MBS loans at an annualized rate of 13.19 percent.

Currently, the GSE holds $2.8 billion in MBS and other guarantees, a number that has changed little over the course of this year.

Single-family mortgage loan delinquencies at the GSE continued their downward trend in June, a trend that has persisted over the past 12 months. June's single-family delinquency rate at Fannie Mae was 2.05 percent, down from 2.08 percent in May.

Multifamily delinquencies remained steady at 0.10 percent in June and have fluctuated only 0.01 percentage point over the past six months.

Fannie Mae modified 10,083 loans in June, bringing the year-to-date total to 68,054.